Skip to main content
4:00 pm
watch out, it may be pulled out from under equities, and they may have moved the markets. s&p down 19 full points. google no longer above $800 a share. david asman, a lot to talk about today. david: who better to talk with than allen, former vice chair of the fed, influence what happens in the fed, but knows what's going on inside the fed. it was that idea, when the notes were issued today, that there's a lot more inviting the fed than before, as to when to end the printing that markets like. liz: markets love. back to nicole on the accelerated losses. >> when i think about that and talk to the traders, as soon as the minutes broke, we saw the dollar beginning to rally even more so. the ten year yield accelerate, and we've seen gold selling off. we continue to sell off and the vix higher as well. david: talk about gold
4:01 pm
specifically, down $40, obviously, as a result of what happened at the fed, but there was also news about inflation. inflation picking up a little bit, and that worried people a bit. bottom line is gold went down and gold stocks with it. >> right, and all of those factors are exactly correct, dave, and i would also add in south africa where they have labor problems and some say those are overblown, but others say, no, that stock, for example, down 7%. liz: high end lek try car maker tesla going to report earnings, stock down 10%, but we're waiting for the numbers. >> one to watch. may city's sells off on the battle to martha stewart. liz: bells clang on wall street, and in just the last hour and five minutes, a big drop down for the dow jones industrials, after the fed minuteses, down 12
4:02 pm
-22 points. the dow plummeted 110 points, s&p lower by 19, one and a quarter percent. nasdaq's hammered, down one and a half percent and russell down one and a half percent. david: oil, following gold's lead, but a large block of trades in the market fueled speculation that a commodity fund was forced to liquidate sending prices lower. crude declined 2.3%. liz: losses didn't stop that. prices at a one-month low on weaker than expected housing data, copper's fifth consecutive day of declines, sending miners, down six full percentage points, southern copper also hit. david: home builders, good news until today with steep declining until data showed housing starts fell more than expected. news sending home construction itb almost 5%.
4:03 pm
it's top hold, include holte group. liz: we expect earnings from cheesecake factory as well as tesla. when they do, we'll bring you the numbers. at 2 p.m. eastern, the minutes from the last reserve meeting released revealing there is more of a tug of war now over how long the feds' bond purchasen program should go on. asking the former fed vice chair, allen blinder, when the press should be shut down and what it does to the market. david: sony, well, it hopes to change that in just a couple hours, we expect the announcement of the latest game system, the play station 4, what is at stake, what is needed to compete with microsoft and anyone -- nintendo. liz: stocks sinking from multiyear highs after the
4:04 pm
federal reserve released minutes from the last meeting. dow snapped a two session winning streak as all three closed in the red, and add to that before 3 p.m. eastern, bill gross, the largest bond fund manager treated that he said watch out, when they pull out that money printing, they don't like to call it money printing, but it could be a problem for equities. look at today's biggest laggers here. dollar rallied session highs against the euro after the fed hinted they would stop buying assets. euro at a four week low against the greenback dropping to 1.3279. it was, a week ago, 1.37. david: rome, here i come. liz: housing sinking 5.8% in january after serging nearly 13% the previous month. the new moment construction slowed to an annual rate of 890,000 last month, down to 973,000 in december.
4:05 pm
david? david: i believe we have the tweet, if we can, by bill gross. this is on twitter -- a tweet sent out, and he says that fed minutes, the fed minutes, many participants in the fed minutes concerned about further asset purchases, of course, $85 billion is what they spend, $85 billion a month appears to be at risk later in 2012 if the economy improves. again, when bill tweets something like this, it moves markets, and it was just before three o'clock. we noticed that that's the point at which the declines began to go even further south, and 10 it may, indeed, be that tweet by bill gross. todd is in the pits of the cme and joe bell, senior equity analyst, and david, first trust financial resources president. todd, let's start with you and that thud heard at 2 p.m. when
4:06 pm
we got word how much there was by the fed. by the way, that led to gold just plummeting. it ended down over $40. is that going to move the markets further tomorrow in a particular direction? >> hi, david, hi, liz, you know, i think we had a natural selloff. looking for a reason to take profits. we got the reason. there's a little fighting at the fed, selloff in the market, and gold trending lower the last six months anyway, and when soros pulled out last week with the news today, a perfect recipe for a drop in gold. gold could go to 1550, another ten bucks here, and if it doesn't hold there, a lot lower from there. there's profit taking, in fights from the fed, and lack of free money that hedges fear here. liz: let me get the sense of what the floor was like. when the minutes came in, dropped from 12, 40, and
4:07 pm
moderated, and then suddenly before 3 p.m., down 95 points, todd, what did you see? is it the bill gross tweet or something else? >> i think it might have been the tweet that might have started it, but, really, it was a gentle sale. hard to say "gentle" with a hundred points, but it was orderly. there was not a lot of panic. 15% is not a huge move. it was a orderly selloff. you can hear the noise in the background now. this is how it was when the selloff started. really, i think it's more of a profit taking area here. i think we're looking to take some profits. i think you want to look at the 1510 in the s&p down to 1500. i think that's probably as low as we'll go for new now. look for rally here unless there's a major shift in the fed's announcement tomorrow. david: clearly, the markets didn't shrug off the news today. what do they do tomorrow? we'll come back to you when the s&p futures close to get a preview, if you will, of what the markets dd tomorrow.
4:08 pm
liz: in the meantime, joe bell and david. joe, does a move like that in the last hour of trade shake your conviction at all on where you stand? >> in the bigger picture, i'd say no. the reason i say that is, yes, perhaps we were a little -- liz: hold on, we have to interpret. we have tesla numbers out. sandra? >> right now, liz, seeing that they did meet on earnings -- sorry, they missed on earnings per share. a loss was expected, but they reported a bigger loss than analysts of 65 cents a share, but a loss of 53 # cents a share anticipated. stocks moving higher. revenues beat at $306 million for the scwawrt. the street looked for 298 million. the company's also, by the way, touting that revenue number as a 5 00% quarter over quarter increase. that would be fourth quarter compared to the third quarter,
4:09 pm
but that's what we have now. a miss on the earnings front, a loss of 65 crepts a share, and a beat on the revenue. liz: okay. we have to point out a couple things here. the "new york times" has done a review of the tesla model s, and television -- it was heavily criticized or supported, depending on your side, but the fact that the stock is still very close, if not besting its 52-week high at the moment, david. david: indeed. this, again, is not an earnings because they have been losing money. in the third quarter, lost $100 million, but they ramped up production. how many cars, how many of the new sedans, the one tested by the "new york times," how many of those are they going to sell? they have preorders in for,ic, 10,000. the question is will they sell 20,000 a year in the final days of last year, said that they will reach 20,000 mark in sales,
4:10 pm
of the sedans, which cost, by the way, over a hundred thousands dollars. the question is at the sale of 20,000 a year, will the price be enough to gain profit. it is a loss, after hours, it is a touch higher after hours even though they lost earnings per share more than expected, but gained more. sandra has figures. what do you have? >> i want to jump in precisely on the model s delivery number. it was expected 25 # 00 -- sorry, 2500 to 3,000 model s deliveries. we're seeing a number of 2400, which falls just below the range that was predicted there. 2400 model s vehicles deliveredded in the quarter. they said, overall, the sales of the model s improved the gross margins to almost 8%. those are a couple big numbers that i know a lot of investors watched for. liz: i had an opportunity in september at three days in the valley coverage to get exclusive
4:11 pm
access to the tesla plant in california to ask the question, will you make the 20,000 model s sales number, and here's what he had to say. >> highly confident we'll have over 20,000 cars y the end of next year. >> okay. >> i'm really, really confident we'll do that. liz: the question becomes, can he do it if he's trending below what was expected for the quarter, but at the moment, the market is modulating for the stock, and tesla hovering where it closed earlier today. joe, i rudely interrupted you. >> no problem. liz: finish your thought, go ahead. >> the market sold off in the short term, but i think when you take a look, the momentum strong, up seven consecutive weeks, but perhaps in the short term, it makes sense for a breather. at shafers, we looked how often is the seven week streak? history. in the past 40 years, it's only
4:12 pm
happened about 11 times. it's not that common. what happens when that streak occurred? going out about one or two months, we've seen out performance versus typical one and two months returns on the s&p 5 # 00. perhaps short term consolidation, but hammers home sometimes trends go further than what people believe. david: one problem corporations wish they had, a cash horde. he's been cash short, but a lot of companies have millions of dollars, billions in the case of companies like apple, hundreds of billions. what happens if that money is deployed, and what happens if it's not deployed? does that affect the future of the markets? >> yeah, it sure does. it's one of those silver linings. on the short run, i agree with my counter part. all bets off in the short run. plenty of hedge winds, but items that keep us somewhat cautiously optimistic over the long haul is
4:13 pm
the cash on the balance sheet of corporate treasurers and cfos on the sidelines. once that cash really is deployed in a meaningful way, that is clearly a driver of that. david: you said "in a much more meeb e--- you said, "in a much more meaningful way," does that affect the markets? >> there's $2 trillion in cash in total depending on reports, so there's been some, i mean, we clearly we've had a pick up and markets have been optimistic. revenue projections were beat two-thirds of the time this last quarter, another positive, but, ultimately, corporate spending, which hopefully will be tied into earnings across the board, will be either a giant plus or minus over the next coming quarters. liz: here's a giant plus, and that's housing. granted today, the number did
4:14 pm
not look as healthy, but if you picked out at least single family home, those look good, joe, and you're bullish on the housing sector. talk about why, and does today's news shake you at all in >> like you said, in the short term, yeah, there was a toll brothers worse than expected report and some mixed housing data that the stocks reacted negatively to. that's a bigger picture. historically. the scary pool backs are buying opportunities, and the skepticism in home builder stocks could bode well for them longer term. liz: joe bell, great to see you. >> thank you. liz: computer hackers making their way into major american companies and organizations, maybe even the one you work at. some are linkedded back to actual governments in china. david: the private sector, meanwhile, with companies like fireeye help with protection,
4:15 pm
well, now, the white house is looking to step up efforts to combat what some people are calling cyber terrorism. details what the government's doing to protect you and your company coming up next. ♪ ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission.
4:16 pm
they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.
4:17 pm
4:18 pm
liz: let's see now s&p closed and indicationings for tomorrow. todd's in the pits of the cme. >> they closed on their dead lows. a little heavy selling came in at the close here. looks like we're probably going to open tomorrow lower, look for 1500 s&p for support. until then, looks like we'll work lower. heavy pressure here at the close. david: wonder what happens with gold tomorrow, too. todd, we'll find out shortly. well, shares of groupon sinking tailed. let's head back to nicole on the floor of the new york stock exchange, nicole? >> interestingly enough, groupon, daily deals, company number of one, and living social, the second largest internet daily deals company. in a memo, the living social
4:19 pm
folks ceo noted to employees they are back on the fundraising there raising $110 million in new funding and in new round of funding. obviously, that guarantees living social's near term survival, and when the competitor raases money, that doesn't bode well for groupon which is down 5.6% at the close. a stellar run over six months, over 75%. david: thanks, nicole. liz: cheesecake factory has numbers out. >> a slight miss on the top and bottom lines. earnings per share at 51 cents, a penny shy of the 52 cent analyst's estimate. revenues at 264.7 million for the quarter, and amists looked for more at 468.5 million. also, i want to point out that comparable restaurant sales at cheesecake and grand lux chains up nine tenths of 1%. a small increase compared to
4:20 pm
last quarter, but, liz and dave, reading through the report here, they say the impact of hurricane sandy negatively affected them and their up by approximately six tenths of a percent as far as restaurant sales were occurred. without sandy, up 1.5%. they pip the miss on the hurricane and its impact on the restaurant sales. david: down 2% or 3% right now after hours. thank you very much. >> thank you. liz: cyber attacks on american companies, big news lately, linked to the chinese military, a big news from a report yesterday. we spoke to dave dewalt, and we asked him, does our government need to get in the game, do more to defend us against these attacks? >> it's just too easy to steal information and money in the cyber domains around the world are easy victims to prey and hackers out there so we need to work on this and we need to work on it fast and technology and
4:21 pm
government need to come together to fix it. daaid: what is our government doing to defend us against what is seeming more and more like a cyber war? let's head out to peter barnes in the beltway for the latest on that. peter? >> hey, david. administration officials at the briefing right now are going out of their way to say that china is not the only country involved in committing economic espionage against the u.s., but six of the seven cases it cites in the new trade secrets report involve china. the administration's promising stepped up efforts including increased trade and law enforcement to protect u.s. trade secrets, especially, in light of that separate report this week on aggressive chinese hacking of dozens of u.s. companies. >> as critical technology has advanced, criminals adapted accordingly. our need to keep pace with these changes remains imperative, and the stakes have never really been higher. in some industries, a single
4:22 pm
trade secret is worth millions or even billions, billions of dollars. >> this report today follows up on the president's executive order that he signed last week to try to beef up cyber security efforts, but new programs such as better information about cyber threats between u.s. intelligence agencies and private sector companies will take time to roll out. david and liz? liz: thank you, peter, very much, peter barnes. david: news from the fed minutes moving markets today that led to this. find out what former vice chair is think is next for the fed and when the money might stop pouring out. liz: sony has a big playstation event under two hours here in new york. everyone expects the announcement of the long awaited playstation 4. some of the floor crew cheering already. we look at what the new consul has to feature to keep sony in the game, and a step ahead, and,
4:23 pm
frankly, the trend of fewer people buying video games. ♪ today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
4:24 pm
(announcer) at scottrade, our clto make their money do (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. [ male announcer ] tohold a patent
4:25 pm
that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well that would make you... the creators of the 2013 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
4:26 pm
david: sony kicking off a big event in an hour and a half of. the company expected to announce the play station 4 gaming consul. they have not released a new gaming system in six years, and with consul sales continuing to fall, they look for this device to be a game changer.
4:27 pm
web bush securities managing director of equity research joins us. michael -- for those who don't know, by the way, old-timers who don't play with the game consuls, this more than a game consul, but a multimedia box. it does video streaming. you can do netflix, dvd, video chats, a whole lot of stuff; right? >> you have that in the current playstation 3, and there's more of that in the ps4. david: you say "a lot more of that," what else? >> a lot more multimedia functionalities. i think you'll probably get the opportunity to actually have video chat while you're playing a game. i think that's interesting. if you play against a friend, to have your friend's face on the corner of the screen is interesting. you can actually watch their joy as they shoot your carkts or their grimace as you get them. i think that's pretty cool. sony has a big music business. they have a big movie business. i expect them to beef up the
4:28 pm
video on demand, music on demand, music download businesses. they are partnered with netflix already, and i think they'll partner with amazon prime, hulu, and you'll get more functionality of the box to have entertainment options than just the games. david: sony has a production company, and content is really the bug-a-boo for companies who are streaming videos, trying to figure out how to deal, how to pay off for the content. sony has a head start with the production company, but might they work out deals with other production companies for content? >> you know, i think you're going to probably see microsoft take the lead on that. microsoft's further along than sony, and i think microsoft invested in the technology to turn their consul into a cable box so i would bet anything that the next xbox is a cable tv box, partnered with some big cable provider. i don't think sony's quite there yet. i think that's a little bit too extensive for them to extensive
4:29 pm
a bet for them to take, and, mostly because microsoft already has a healthy subscription service for xbox live so they subsidize other services by raising the rates there. sony is not great for charging on line. i think they are behind, but maybe. david: how about a deal with amazon? amazon prime thing, which it could potentially deal with sony on and come out with a power house, no? >> i think that's right. i think the biggest problem with the service like prime is we know how to get it on our kindle and how to get it on our pc, but we have no idea how to connect it to the television. amazon needs to turn that switch on. a partnership with the sony with the ps4 accelerates their expansion of prime into other households. david: finally, apple tv, waiting for apple tv for a long time. supposed to have within it all these things that now some of the playstations have with it. does this -- does playstation 4 kind of take wind out of the
4:30 pm
sales of apple tv? >> yeah, i think -- i mean, apple tv's a smart television, and i don't really think we need the brains in our television monitor. if you think about it, you're pc, it's not the monitor that's smart. it's the cpu below the monitor. there's no reason for us to put the cpu into the monitor. i think apple will make a mistake when they launch that product. the apple faithfuls buy it. if you have a box there for another reason and playing games is a good other reason, then you got the brain that's already connected to your tv, and then you can go out on the internet to deliver other services. i actually think the p s4 and next xbox kicks apple's butt, timely, someone to beat them at their own game. david: thank you very much. >> thank you. david: liz? liz: the federal minutes out, and markets plummet. we ask the former vice chair the real story, when the stimulus
4:31 pm
story might end, what needs to be done to boost the economy, and what would happen to the markets if did -- does end? was today a really test? what's that really mean for the futures? he's coming up next. ♪ . ...
4:32 pm
4:33 pm
liz: the minutes from the federal reserve show there is now maybe more heated
4:34 pm
debate over timing and amount of asset purchases that the fed has been doing, 85 billion every month. do these purchases need to even even before unemployment drops? david: joining us for first on fox business alan blinder, former federal reserve vice chairman and author of, after the music stopped. he is a good friend. always pleased to see you. we had the fed notes issued. it thump, had a big effect on gold. then we had a twitter, tweet comes out from bill gross from pimco. says there is better possibility that bond buying of the fed and the money printing might end before 2013. we have folks saying and i'm going to quote milan moran, a economist, the minutes show committee far less unified than any other time in the past few years. do you agree? >> not very much. there was one word, i sort of looked at to anything to
4:35 pm
get excited about. said many participants expressed concern. if that had said a number about participants expressed concern i think it would essentially be duplicating the previous meeting. david: one word in the fed means a lot, does it not? >> not as much as the markets take it to be. it means something. a number, when it says many, that is probably, i don't know, eight, nine? but it is not three. that's for sure. david: right. >> you get this very small nuance of difference. markets do what they do is overreact to every stimulus, up or down. if you asked me, do i think this means that there's much of a chance, a nontrivial chance that these asset purchases end before the calendar year is over, i say no. but if you ask me is the fed badly divided on this, i say what everybody says, yes, they certainly are. liz: the fact that the discussion is being had is something that the market seized upon today, and as we
4:36 pm
know bill gross from pimco, who tweeted out, watch out below who knows. the drop in the market was less than a percent for the dow jones industrials. let's not overstate it. could it gyrate a bit more? in essence what the fed has been doing very much the reason a lot of people got back into equities. they felt the fed trade was there. the pillow is underneath stocks. >> sure. well the pillow is more underneath bonds actually. the fed is not going to react unless there is something drastic that happens in the stock market. the bond market is a different thing. as we know, all of these qe programs are aimed at the bond market one way or another at whole level of interest rates or flatting the curve. that is what the fed is trying to do. that is not a secret. but i always said, i said years ago, when they used to talk about the greenspan put, and then we have the market crashed, i said, he didn't make good on his put, did he? i don't think you should make a bet on a bernanke put on the stock market. that doesn't mean --. liz: you could over the past
4:37 pm
year. we have had a brilliant rally. >> sure. but you're saying, this liz at the end of the year looking back. and you're right. but at the beginning of the year who knew really what was going to happen. david: let's talk about what has happened as a result of the bond purchases. we have had a good trend down although the last unememployment number did tick up just a .1 of a percent. is the danger because obviously the banks have not increased lending to the point, frankly businesses have been hoarding a lot of cash as well that we talked about. so the money is being printed by the fed but it's not being circulated. isn't that the problem? >> that is the problem but --. david: how do you get it to be circulated? it is not the money printing that is the problem, it is the circulation that is the problem. >> the latest news on that front is pretty good. if you notice over the last few months commercial lending by banks is going up at a nice pace. if that pace continues --?
4:38 pm
david: enough to justify the money printing? >> i think so. it doesn't take much of a justification. neither does ben bernanke. you have a economy, i don't want to say it is dead in the water but it is kind of limping along. the fed long ago lowered the fed funds rate as low as it can be. you can knock a few basis points out of it but it is as low as it can go. the two weapons of choice became buying assets and communication, so-called forward guidance and the fed is working those two pretty hard. as you know, i think i mentioned this on the show before, i've been trying to get them to lower the interest rate on bank reserves. liz: right. >> mentioned banks are sitting on this hoard of cash. they're not earning a lot of money at 25 basis points. but as i sometimes say, my bank only pays me one basis point on my --. david: me too. >> you too. on my checking account. i would like to see the fed go back to where it used to be by the way, zero. liz: alan, you just said,
4:39 pm
there's more of a pillow underneath the bond market. are you worried about a bond bubble bursting at some point? there are so many people in treasurys over the past year-and-a-half, if suddenly yields were to jump even just 1%, you could see price drops a little bit more dramatic and people can indeed, inflation adjusted lose money on bonds? >> absolutely. i think if you're time frame is long enough, of course the crucial thing no one knows when the timing comes, they will lose money on bond. it is not a probability. it is a certainty. liz: that's a worry. >> that's a worry. i don't see it imminent because of what we were saying about the fed and because the economy is not that strong. by the way if the fed would continue doing exactly what it was doing and the economy starts growing, three, 4% a year, i wish i interest rates will shoot up without the fed doing anything. if either of those happens, we're going to see very sizable capital losses on long-term bonds. david: professor alan blinder from princeton. author of, after the music.
4:40 pm
when does the music start again by the way? we know it stopped. you wrote about it. >> i don't know. it may be starting sooner than we think. you already have seen people moving into riskier things. forgetting some of the things they said they would never forget, you know? david: let's hope you're right. >> little bits of music are starting already. david: good news from professor blinder. good to see you again. thank you so much. the cash-strapped postal service is turning to the fashion world for help. that story later this hour. liz: jive provides social networking tools not just for individuals but large businesses. the stock, while down 21% over the past year, is up 22% over just the last three months. up next we have the chairman and ceo here of jive, telling us what's being done to keep that number rising. ♪ .
4:41 pm
at a dry cleaner, we replaced people with aachine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're ofn all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location.
4:42 pm
i honestly loved smoking, and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix is proven to help people quit smoking. it redus the urge to smoke. it put me at se that you could smoke on the first week. [ male announcer ] some people had changes in behaor, thinking or mood, hostility, agitation, depressed md and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop taking chantix and see your doctor right away as some can be life-threatening. if you have a history heart or blood vsel problems, tell your doctor if you have new or worse symptoms. get medical help right away if you have symptoms of a heart attack. use cautiowhen driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. with chantix and with the support system it worked. it worked for me. [ male announcer ] ask your doctor if chantix is right for you.
4:43 pm
>> i'm sandra smith with your fox business brief. minutes from the federal reserve january meeting spurred a late-day drop-off on wall street with the blue-chips snapping a two-day winning streak. boston beer out with its fourth quarter results tonight after the bell. earnings per share matching estimates at $1.25. revenue beat expectations at $153 million. xerox and foot locker raising their quarterly dividends. shareholders on record of march 2th can expect a cash payout of 5.75 cents on a share. april 30th, marking a 35% increase from the current dividend. foot locker raising its dividend to 11 cents a share. approving a new three-year, 600 million dollar stock repurchase. that is the latest from the fox biz biz. aw this is tragic man, investors just like you
4:44 pm
could lose tens of thousands of dollars on their 401(k) to hidden fees. thankfully e-trade has low cost investments and no hidden fees. but, you know, if you're still bent on blowing this fat stack of cash, there's a couple of ways you could do it. ♪ ♪ or jt go to e-trade and save it. boom. ♪
4:45 pm
liz: social software-maker jive is changing the way big corporations do business. the company reported a 44% jump in sales last quarter. the stock is up nearly 22% over the past three months. go back a bit. it has been a little bit rougher of a road. what is driving demand now for jive's business? joining us the chairman and ceo. great to have you back. >> thanks for having me, liz. liz: you went public in december of 2011. you were one of the sort of standout ipos. you get in the real world, grown-up world, a little bit rougher. but things look good now. what is driving your business? >> we moved out from underneath the social halo in that early period of time. it was dominated by enterprise and social software for social software sake. now we're moving to the mainstream. big companies as you say see the value in workforce
4:46 pm
productivity and revenue gain through the use of a new way to communicate. look work is broken. nobody enjoys doing thousands of e-mailses a day. social software and enterprise represents a new breakthrough way to get work done. liz: tell me what you do for a company. one of your clients is cisco or avon . what do you do for them? >> we make the workforce more productive, allowing them to find people and collaborate on content and work in groups in a social paradigm. obviously stream and trending content. that's the paradigm from the consumer world. they work differently in their businesses which is what they want to do from their personal lives. liz: does the software eliminate back stabbing? that would be really cool. obviously not. >> that would be really cool. liz: tell me what the future looks like for you. what are you working on? what is your pipeline? how do you grow the business? >> the business growth as you mentioned 47% revenue growth. more than 800 blue chip clients.
4:47 pm
all of them big companies in a wide variety of industries. what makes it go mainstream is the business value we see. companies realize the way to make the workforce more productive, engineer market, sell better, is the new and different way to communicate. liz: what's the key when it comes to social networking for big corporate clients? because now they're realizing, there's actual revenue that can be attached to something like this. how do you then turn that into real revenue? can you promise something like that for one of your 800 blue chip qints? >> not only can we problem is it but work done by a large business consulting firm that did the work in our customer base said, our customerses see up to 4% revenue gain when the workforce is more than 15% more productive using the jive platform. they communicate better. they're more effective. liz: those are real numbers. >> real numbers and we can guaranty those kinds of results if in fact they go deep in the use cases we've proven out on our customer base. liz: we and everybody else
4:48 pm
talking about reports of massive hacking from outside this nation, from real nefarious operators, possibly the chinese governments. the links look very obvious to us and our guest yesterday from mandiant, dave dewalt. >> right. liz: what can you do? can you work on anything to close some of the holes and leaks where we see entry points? >> we take our customer's data very seriously. we offer a very flexible delivery model. many of our financial institution clients and health care clients take our software on their premise behind their firewalls. it is still software as a service. but they protect it to the best of their ability. now the larger percentage of our business is delivered out of the cloud where we go to great lengths to build in firewalls and secure access to that client's data. but obviously a concern globally, dave dewalt sits on our board at jive software. we're very, very aware of what's going on and we build in the best protections possible for our clients. liz: dave is our guy. we think very highly of
4:49 pm
fireeye and mandiant and what they have done. thank you very much. >> thank you. liz: tony zengali jive software chairman and ceo. social networking works for big companies too. david: that is it an exciting company. thank you very much. the amount of new homes built fell last month coming in lower than expected. is the big upside for lumber about stocks about to be cut down? jeff flock as the story. jeff? >> look, this is beautiful piece of cherry, isn't it? this up here is pine. take a look, this is popular. poplar. big money in wood. there is more money to be made up close and personal. ♪ . we know all your investments may not be with fidelity, but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends,
4:50 pm
gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. a talking car. but i'll tell you what impresses me. a talking train. this glocomotive can tell you exactly where it is, what it's carrying, while using less fuel.
4:51 pm
delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
4:52 pm
4:53 pm
david: as the housing market began to show signs of life, it wasn't just housing stocks that soared. lumber prices took off as well, rising more than 50% last year. liz: but this week's housing data may be showing signs of perhaps a cooling in the sector or not? maybe it is a one-month blip. but homebuilder confidence did show a drop for the first time in ten months and housing starts dropped 8.5% in january. what does it mean for what had been superhot lumber
4:54 pm
companies? jeff flock, we sent him right there, live at harry's lumber in chicago. >> i love to go, to be at the cme in the lumber pit which is kind of cool but this is even better i think, which is a lumberyard. this is one of chicago's oldest lumber companies. look at the homebuilder stocks today. that is the headline of the day i think. if you look at all of our friends in the home building sector, they took a heavy hit today. and ira rosenthal, that doesn't surprise you when we get a falloff in starts like this? >> absolutely not. lumber prices were so darn high lately -- >> when was last time you saw lumber prices this high? >> i don't ever remember them to be this high, to be honest with you. this is high as it has been. >> you and your father and grandfather have been business for a long time? >> yeah. 74 years. >> a company like weyerhaeuser. you buy a lot of lumber from weyerhaeuser. they had a run-up in the stock because they're
4:55 pm
charging you a lot of money. >> i don't know if it has to do with that. there is uptick in demand. so consequently with the increase in demand they're making more money and selling more product. >> your lumber, this is poplar i think here. we got pine here. everything costs more? >> absolutely. 100%. >> i leave you guys with, as we look at the yard. that is by the way, that is molding over there. that is whole bunch of molding that comes from various different surprises -- suppliers. may lumber, that is what you get in falloff in starts. but i do think, when you look at the starts number today, it was not single families that brought it down. it was, you know, it was the bigger developments. that is very volatile. i think it is more positive today than we think and that the market thinks but that is just me out here with the boards. david: i don't think it is just you. a lot of people are saying that. again these prices are
4:56 pm
sky-high right now, the board prices. so it was bound to come down a little bit. >> they are. liz: thank you, jeff. >> different boards today on the fox business network. liz: the fashion world is going postal with clothes ready for rain, heat and snow. details after the break. ♪ . all stations come over to mission a for a final go.
4:57 pm
4:58 pm
this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
4:59 pm
did you know not all fiber is the same? citrucel is different- it's the only fiber for regularity that won't cause excess gas. it's gentle and clinically proven to help restore and maintain regularity. look for citrucel today. it's delicious. so now we've turned her toffee into a business. my goal was take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would makeoney doing what i love. robert ] we created legalzoom to help people start their business and launch their dreams.

FOX Business After the Bell
FOX Business February 20, 2013 4:00pm-5:00pm EST

News/Business. Stock market updates. New.

TOPIC FREQUENCY Sony 12, Us 7, S&p 7, Apple 4, U.s. 4, China 3, Joe Bell 3, Dave Dewalt 3, Todd 3, Joe 3, Tesla 3, Peter Barnes 2, Chicago 2, Nicole 2, Sandra 2, Dave 2, Sandy 2, Scottrade 2, Siemens 2, Legalzoom 2
Network FOX Business
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 130 (Fox Business)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color

disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 2/20/2013